Ottawa is rumoured to be working on an ambitious stimulus package for the recovery phase of the COVID-19 pandemic. The plan, apparently, will be green. So, has the Trudeau government given up on the oil and gas industry?In his first mandate, Justin Trudeau declared that balancing the environment and the economy was a signature policy of his government. By the end, this meant buying and building the Trans Mountain Pipeline to ensure access to markets for Alberta's oil, while reducing greenhouse gas (GHG) emissions through a carbon tax and tougher regulations on the industry.The approach seems to have done as much to divide the country's leaders as to unite them. Who can forget “The Resistance” photo on the cover of Maclean's? The stimulus package will send a signal whether the government still believes in a balanced approach.Narrative plays a critical role in this calculation. Consider climate change. Someone who puts a high value on the short-term priority of preserving jobs will be more willing to live with the risk of melting glaciers than someone who cares passionately about the well-being of future generations. These people can look at the same facts and studies yet draw opposing conclusions about how best to respond – and that's where narrative comes in.Each side will have a story to tell about why they see things as they do. These stories are more than collections of facts and arguments. An effective narrative is like a textured picture – a map – of how subjective factors, such as values and priorities, fit together with objective ones, such as data and facts. And this can make an informed exchange of views difficult and divisive.But if narrative often divides people, it can also unite them. A “shared narrative” is a story that is created by combining or integrating different – and often competing – narratives. A successful shared narrative establishes common ground so that people who disagree can start discussing their differences in ways that both sides are more likely to see as respectful and fair.If the Trudeau government is still committed to the oil and gas industry, its primary challenge lies in narrative building. Canadians will need a shared narrative that shows how support for the industry can be part of a single coherent plan to build a sustainable economy.Is such a story even possible? Perhaps, but it will take some imagination. Let's start by reminding ourselves where we are.
The Environmentalists' Climate Change NarrativeThe United Nation's International Panel on Climate Change relies on thousands of leading climate scientists from around the world to investigate and report on climate change. The 2018 IPCC report delivered an extraordinary and deeply disturbing message to the world, declaring that:
- The planet is currently 1°C warmer than preindustrial levels and on course to rise by more than 3°C by 2100. The consequences would be catastrophic.
- A window exists between now and 2030 to keep global warming below 1.5°C, but this requires an unprecedented, global transition to clean technologies and a decisive reduction in current carbon emissions.
- Canada's oil and natural gas industry is the country's largest private sector investor, injecting nearly $13 billion into the national economy in 2017, and creating about 223,000 direct and indirect jobs.
- The Alberta Oil Sands have an estimated $313 billion of capital investment to date, including $10.6 billion in 2018.
- The production and delivery of oil products, natural gas and electricity in Canada contributes about $170 billion to Canada's $1.8 trillion gross domestic product (GDP), or just under 10%.
- In 2018, the energy sector paid nearly $17 billion to Canadian governments through corporate income taxes, sales and payroll taxes, royalties and land sales.
- Canada produces less than 2 percent of the world's GHG emissions. The oil sands account for 11% of this and 0.1% of global emissions. From 2000 to 2017 the emission intensity of oil sands operations dropped by about 28%, thanks to technological improvements.
- A recent study for the Clean Resource Innovation Network finds that Canada's oil industry is the country's largest investor in clean technology, accounting for 75 per cent of the $1.4 billion spent annually.
- According to Statistics Canada, Canadian businesses reported spending $8.4 billion on environmental protection in 2016 (the latest year for which Statistics Canada has published data). The single biggest contributor was the oil and natural gas industry, which invested $3.7 billion (see infographic below):
- An international panel of distinguished economists has released a study showing that investments in renewable energy are much more likely to boost economic growth for recovery than fossil fuels, in addition to slowing global warming.
- Jim Balsillie, co-founder of RIM and the chair and co-founder of the Council of Canadian Innovators, argues that structural changes in Canada's economy that would normally have taken years have been concentrated into a few months and, as a result, Canada is ready for rapid and largescale investment in clean tech.
- Former Green Party Leader Elizabeth May contends that the current collapse in oil prices is not just a downturn. The industry is no longer sustainable. She argues that “Oil, as the energy of the future, is dead” and that the conditions are in place for a massive green shift.
- Resilient Recovery has collected more than 350 signatories representing 2,150 companies in a campaign for a recovery plan that acts rapidly to invest in and expand clean energy and cleantech initiatives and programs. An informal task force (which includes Prime Minister Trudeau's former principal secretary) will deliver recommendations to the federal government in the coming weeks.
- Recent research (and here) by the University of Ottawa's Positive Energy usefully distinguishes between views that are “polarized” and those that are “fragmented.” The report notes that polarized views on the environment and the economy are more typical of political leaders and advocates than the public. Canadians' views, it observes, are better described as fragmented, that is, they don't have a single, definitive view of the situation.
- Polling data from Earnscliffe Strategy Group also suggests the public is open to alternatives. It finds that Canadians are significantly more inclined to support than oppose an aid package that compensates oil and gas companies for converting to the production of renewable energy.
- Public opinion data from Abacus Research reveals that a majority in all regions of the country is willing to go along with a support package for the oil and gas sector:
- At the same time, Abacus finds that the pandemic has not diminished public support for infrastructure changes that will create a cleaner Canadian economy in the future: